The funding includes USD 100 million of expanded secured credit facility capacity from Citi and over USD 75 million in equity financing. The equity financing, led by Carrick Capital Partners and complemented by existing and new investors, values the company at USD 1.75 billion on a pre-money basis.
The funds obtained will be used to accelerate DailyPay's ongoing product innovation, facilitate expansion into new markets, and explore adjacent categories. Moreover, according to the company press release, the equity capital raise underscores the company's position in the market and will contribute to its mission of improving the future of pay through its employer-integrated on-demand pay platform.
Citi's additional USD 100 million expansion of the existing credit facility brings DailyPay's revolving secured debt facility to USD 660 million, including existing commitments from Barclays and TPG Angelo Gordon. Representatives from DailyPay highlighted the impact of their on-demand pay platform, emphasising its role in helping workers by giving them control over their earnings.
DailyPay officials also welcomed Citi as a financial partner and highlighted the significance of the additional credit facility in line with the company's rapid client and user expansion. FT Partners served as the exclusive strategic and financial advisor for DailyPay in the equity financing transaction.
DailyPay, Inc. is headquartered in New York City but also operates in Minneapolis and Belfast. The company's on-demand pay solution aims to strengthen relationships between employers and employees, providing a voluntary benefit that improves worker motivation and financial well-being outside of the workplace.
DailyPay previously partnered with employers such as Hilton, Target, Kroger, and Dollar Tree in a bid to positively impact hiring and retention for these companies. The platform helps users to manage their earned pay, helping them pay bills on time and avoid fees associated with overdrafts or high-interest credit products.
In September 2023, DailyPay collaborated with Oracle in order to become available on the Oracle Cloud Marketplace, a centralised repository of enterprise applications. Following this announcement, clients and partners gained the ability to integrate DailyPay with the Oracle Fusion Cloud Human Capital Management (HCM).
Customers of Oracle Cloud HCM received the possibility to offer improved employee benefits of on-demand pay to their clients, allowing them to access their income in the moment they’ve earned it. By incorporating DailyPay into the Oracle Cloud Marketplace, the customers will be enabled to pay bills, spend, save, and invest on their own schedule, with an optimised overall control over their earnings.
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